Mkpoikana Udoma
Port Harcourt — The Nigerian National Petroleum Company Limited, NNPC, and Dangote Refinery’s groundbreaking Naira-crude-sales agreement have been hailed as a game-changer for Nigeria’s economy.
Energy marketing expert and stakeholder, Dr. Joseph Obele, commended the policy, describing it as a masterstroke that will transform Nigeria’s economic landscape.
The agreement, which kicked off on October 1, 2024, according to the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, will see NNPC Ltd. supply up to 400,000 barrels of Nigerian crude oil daily to Dangote Refinery in exchange for petroleum products like petrol and diesel, paid for in Naira.
According to Obele, the move was expected to bring relief to Nigerians, who have been grappling with high PMS prices which rove between N950-N1500 per litre across the country and a high dollar exchange rate of N1,650.
He noted that the benefits of the crude oil sales in Naira agreement were multifaceted, as it will bring down the cost of PMS.
“The Naira for crude agreement will definitely reduce the current price of PMS and exchange rate as it conforms with Principles of Comparative advantage. This policy is projected to reduce Nigeria’s dependence on foreign exchange by 40%, promote economic stability, and strengthen the weakened Naira.
“It will transform Nigeria’s economy from a fuel import nation to a fuel export nation. It will automatically collapse the long reliance on the international market for the supply of refined petroleum products,” he stated.
He also highlighted the potential for economic growth, noting that it “will promote economic stability, reduces dependence on foreign exchange by 40%. It is projected to grow the GDP by 4.15%, enhance autonomy, speed of Payment, pricing discount, Better exchange rate, and strengthen weakened Nigeria Naira Which will lead to competition and stimulate economic growth.”
“The crude sales to Dangote in Naira is trading in the local currency which holds significant potential in reshaping Nigeria’s economic dynamics. As Dangote receives crude from NNPC in Naira, we will witness a shift towards a more domestic business boom and it will unlock new avenues for sustainable development in Nigeria, even as it will protect the sovereignty of Nigeria,” Obele added.
This article was originally posted at sweetcrudereports.com
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